Company Number: 13440707

Analysis Date: 2025-07-20 16:26 UTC

1. Credit Opinion: DECLINE
   Ratton Pantry Ltd shows significant financial distress with net liabilities of £46,885 as of 31 March 2024, worsening from £17,620 the previous year. The company’s current liabilities exceed current assets by £58,282, indicating negative working capital and potential liquidity problems. The company’s financial statements are unaudited, and no profit and loss figures are provided, reducing transparency. Additionally, one of the original directors with 25-50% ownership resigned in early 2023, potentially impacting management stability. Given these factors, the company currently lacks sufficient financial strength and liquidity to confidently service new credit facilities.

2. Financial Strength:
   The balance sheet reveals a deteriorating equity position, moving from a small positive shareholders’ fund at incorporation (£64) to a deep negative net asset position (£-46,885). Fixed assets have decreased from £21,077 to £11,397, which may reflect disposals or depreciation. The persistent negative net current assets indicate ongoing reliance on short-term financing or trade creditors to fund operations. The micro-entity status limits detailed financial disclosures, but the available data suggests the company is undercapitalized and financially weak.

3. Cash Flow Assessment:
   Current liabilities (£111,919) significantly exceed current assets (£53,637), resulting in a net current liability of £58,282. This imbalance signals cash flow strain and potential difficulty meeting short-term obligations as they fall due. The lack of cash flow or profit data makes it difficult to assess operational cash generation, but the negative working capital strongly suggests liquidity risk. The increase in employees from 4 to 5 indicates some growth, but without corresponding asset or equity growth, this may exacerbate cash demands.

4. Monitoring Points:

• Quarterly updates on working capital and cash flow to detect any improvement or further deterioration.
• Management actions to reduce liabilities or raise capital to restore positive net assets.
• Stability and engagement of key directors, especially given recent resignation of a significant shareholder-director.
• Filing of next accounts and confirmation statements on time, ensuring transparency and compliance.
• Potential profit or loss figures when disclosed, to better assess operational performance.